15 October 2009
Ben Ukeji — The number of unemployed persons in Nigeria is set to swell as Federal Government yesterday disclosed plans to lay-off 5,000 workers of the Ajaokuta Steel Company and its sister company, National Iron Ore located at Ita-kpe both in Kogi State.
THE number of unemployed persons in Nigeria is set to swell as Federal Government yesterday disclosed plans to lay-off 5,000 workers of the Ajaokuta Steel Company and its sister company, National Iron Ore located at Ita-kpe both in Kogi State.
Sack of staff was part of decisions taken by a joint ministerial committee comprising the Ministry of Mines and Steel Development, Ministry of Labour and Productivity and the Finance Ministry respectively.
Minister of Mines and Steel Development Mrs. Diezani Allison-Madueke, who disclosed this to newsmen yesterday in Abuja, said President Umaru Yar'Adua has however approved N3.32 billion as payment for 10 months salary arrears owed the affected workers.
Allison-Madueke said that restructuring of the two companies was aimed at laying solid foundation for the conception or privatisation of the entities to an efficient core investor with the required expertise to transform fortune of the organisations.
According to her, government was no longer prepared to take responsibility for the salaries of staff in near comatose firms which drain the ministry's budget.
She said the payment of workers arrears, which started last Friday would end the violent protest by the steel workers.
Workers under the aegis of Iron and Steel Workers Association of Nigeria have continued to protest the non-payment of their salaries.
In one of such protests last week, the workers blocked the highway at Ajaokuta, obstructing movements of motorists from both eastern and northern parts of the country.
They had also carried out similar demonstration at the ministry's headquarters in Abuja.
The minister, however, said it would seek approval of the President to retain few workers to man essential facilities of the company pending its final privatisation.
Daily Champion, however, learnt that the fund for the payment of workers salary arrears was included in the ministry's supplementary budget recently passed by the National Assembly.
The N3.32 billion, according to our investigation, was not captured by the ministry in the 2009 budget because the firm was sold by the immediate past administration to an Indian firm.
The Federal Government had recently revoked the sale of Ajaokuta Steel Company to an Indian firm because the procedure for the sale of the company was not transparent.
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